Warren Buffett (Berkshire Hathaway) Stock Portfolio – Update 2013 Q4

Warren Buffett’s Berkshire Hathaway stock holdings for Q4 2013 was filed on 2/14/2014. There was a lot buying activity during the fourth quarter of 2013, with a new holding in Goldman Sachs and Liberty Global PLC. Increases were made to DaVita, Exxon Mobile, General Electric, US Bancorp, USG Corp, and WalMart. Stakes in Conoco Phillips, Liberty Media, Moody’s, Starz, and Suncor were reduced. Glaxosmithkline and Dish Network were eliminated. The filing is for the quarter ended of 12/31/2013:

 

Berkshire’s New Stock Holdings:

Goldman Sachs Group Inc [GS]

– Berkshire initiated a new stake in Goldman Sachs by exercising its warrants to buy 12,631,530 common shares. On 12/31/2013, the total of Berkshire’s holding had a market value of approximately $2.24 billion ($2,239,065,000).
– According to documents filed with the Securities and Exchange Commission (SEC) on 2/11/2009, the company has the right to acquire more than 43M shares of Goldman Sachs Group Inc. Back in September of 2007, Berkshire invested $5 billion in preferred shares of the investment bank paying with a yield of 10%. Berkshire gained warrants to buy 43.5M common shares at $115 per share. In October 2013, the warrants were converted under an amended plan.

 

Liberty Global PLC [LBTYA]
– Berkshire initiated stake in Liberty Global PLC, an international cable company, purchasing 2,948,284 shares. On 12/31/2013, the total of Berkshire’s holding had a market value of approximately $262.4 million ($262,397,000).

 

Berkshire’s Stock Additions:

DaVita Inc [DVA]

– Berkshire increased its stake in DaVita by 1,314,170 shares (3.74%) up from 35,147,124 shares (since the SEC filing on 11/8/2013), bringing its total to 36,461,294 shares. On 12/31/2013, the total of Berkshire’s holding had a market value of approximately $2.31 billion ($2,310,552,000). This has been the seventh time in eight quarters that it had purchased shares of DVA.
– During Q3 2013 Berkshire doubled its holding in DaVita by 16,472,924 shares (110.01%) up from 14,973,906 shares, bringing its total to 31,446,830 shares. On 9/30/2013, the total of Berkshire’s holding had a market value of approximately $1.79 billion ($1,789,325,000). However, an SEC filing on 11/8/2013 showed Berkshire bought more DaVita and added 3,700,294 shares (11.7%) between 11/6/2013 – 11/8/2013, up from 31,446,830 shares to a total of 35,147,124 shares.
– During Q1 2013, its holding of the dialysis services company was increased for the 6th consecutive quarter since its initial purchase and added 1,365,971 shares (10.04%) up from 13,607,935 share, bringing the total to 14,973,906 shares.
– DaVita has been one of the more interesting holdings as it had continued to add after the first quarter According to the SEC Filing, between 7/2/2013 – 7/3/2013 it had added in multiple transactions 639,200 shares at prices ranging from $113.42 to $114.41, bringing its total to 15,613,106 shares as of 7/26/2013.
– On 5/7/2013 Berkshire signed a Standstill Agreement not to propose a merger (to increase its stake to 25%) without consent from DaVita board, if Berkshire owns more than 15%. Berkshire owned 14% of the healthcare company at the time. The agreement was a bit unusual for Berkshire, which makes one consider the possibility of a takeover. As I’ve mentioned before, DaVita was a long time favorite of Ted Weschler prior to joining Berkshire. Weschler was instrumental in helping Buffett more recently acquire the newspapers, and was the one who signed the DaVita agreement. This looks like the precursor move for him to help Buffett unload the elephant gun in a friendly takeover!
– During Q4 2012 Berkshire increased its stake in DaVita significantly by 3,410,366 shares (33.44%) up from 10,197,569 shares, bringing the total to 13,607,935. Berkshire added shares multiple times between the end of Q4 2012 and the end of Q1 2013
– In Q3 2012 Berkshire added 897,569 shares (9.65%) up from 9,300,000 shares, bringing the total to 10,197,569. After the third quarter, the company continued to buy 2,095,484 more shares (20.5%), bringing its total to 12,293,053 shares as of 11/26/2012.
– In Q2 2012 the company purchased 3,300,000 shares (55%), from 6,000,000 to a total of 9,300,000 shares.
– In Q1 2012 Berkshire more than doubled its stake by adding 3,315,500 shares (124%), from its original 2,684,500 to a total of 6,000,000 shares.
– DaVita Inc, was a new holding in Q4 2011.

 

Exxon Mobile Corporation [XOM]

– Berkshire increased its stake in Exxon by 9,885,533 shares (31.64%) up from 31,244,110 shares, bringing its total to 41,129,643 shares. On 12/31/2013, the total of Berkshire’s holding had a market value of approximately $4.16 billion ($4,162,320,000).
– During Q3 2013 Berkshire initiated a stake in the energy giant. According to an amended SEC filing, a total of 31,244,109 shares of Exxon was purchased. On 9/30/2013, the total of Berkshire’s holding had a market value of approximately $2.82 billion ($2,822,906,000).

 

General Electric Company [GE]

– Berkshire increased its stake in long time holding General Electric, by 9,996,602 shares (1697.5%) up from 588,900 shares, bringing its total to 10,585,502 shares. On 12/31/2013, the total of Berkshire’s holding had a market value of approximately $296.71 million ($296,712,000).

 

Graham Holdings Co [GHC]
– The 13HF SEC filing on 2/14/2014 lists Graham Holdings Co for the first time. The Washington Post Co changed its name to Graham Holdings Co, after it sold the Washington Post newspaper to Amazon’s CEO Jeff Bezos. The company’s symbol changed to GHC on 11/29/2013. Berkshire’s stake did not change at 1,727,765 shares. On 12/31/2013, the total of Berkshire’s holding had a market value of approximately $1.15 billion ($1,146,062,000).

 

US Bancorp [USB]

Berkshire increased its holding in USB for the fourth consecutive quarter by 203,400 shares (.26%) up from 79,117,501 shares, bringing its total to 79,320,901 shares. On 12/31/2013, the total of Berkshire’s holding had a market value of approximately $3.2 billion ($3,204,565,000).
– During Q3 2013 Berkshire increased its stake by 840,200 shares (1.07%) up from 78,277,301 shares, bringing its total to 79,117,501 shares. On 9/30/2013, the total of Berkshire’s holding had a market value of approximately $2.89 billion ($2,894,119,000).
– During Q2 2013, its holding in US Bancorp was increased by 16,819,200 shares (27.37%) up from 61,458,101 shares, bringing its total to 78,277,301 shares. On 6/30/2013, the total of Berkshire’s holding had a market value of approximately $2.83 billion ($2,829,725,000).
– During Q1 2013, Berkshire increased its stake in the regional bank, adding 193,500 shares (0.32%) up from 1,956,791 shares, bringing its total to 2,085,274 shares. On 3/31/2013, the total value of Berkshire’s holding had a market value of approximately $2 billion($2,085,274,000).
– In Q3 2012, Berkshire again reduced its holdings in US Bank slightly for the third consecutive quarter by 4,736,112 shares (-7.17%), down from 66,000,713 shares, bringing the total to 61,264,601 shares. On 9/30/2012, the company’s holdings in the bank was worth approximately $2.1 billion ($2,101,375,000).
– During Q2 2012 Berkshire reduced its holdings in USB by 3,038,613 shares (-4.4%), down from 69,039,326 shares, bringing the total to 66,000,713 shares.
– During Q1 2012 it reduced its stake by 100 shares (-0.0001%), down from 69,039,426 shares, to a total of 69,039,326 shares.

 

USG Corp [USG]

– Berkshire increased its stake in USG by 17,817,982 shares (104.37%) up from 17,072,192 shares, bringing its total to 34,890,174 shares. On 12/31/2013, the total of Berkshire’s holding had a market value of approximately $990.18 million ($990,184,000). This has been the only action on this holding since 2009. It is likely that the increase is due to the rights to acquire more than 43M shares of USG Corp. According to SEC documents filed 2/11/2009, USG shareholders approved Berkshire’s right to convert its senior notes of about $300 million into common shares. Buffet’s Berkshire currently owned approximately 17M shares at the time. Converting all the notes would result in ownership of over 43.4M shares.
– SEC Filing related to USG Corp:
http://www.sec.gov/Archives/edgar/data/109694/000118143109008180/xslF345X03/rrd232358.xml
http://www.sec.gov/Archives/edgar/data/757011/000119312509025581/dsc13da.htm

 

Wal-Mart Stores Inc [WMT]

– Berkshire increased its stake in Walmart by 236,498 shares (.48%) up from 49,247,235 shares, bringing its total to 49,483,733 shares. On 12/31/2013, the total of Berkshire’s holding had a market value of approximately $3.89 billion ($3,893,875,000).
– During Q1 2013, Berkshire added 1,746,053 shares (3.68%) up from 47,501,182 shares, bringing its total to 49,247,235 shares.
– During Q4 2012 the company added 793,040 shares (1.69%) up from 46,708,142 shares, bringing its total to 47,501,182 shares.
– In Q1 2012 Berkshire increased its stake by 7,671,000 shares (20%) from 39,037,142 shares to 46,708,142 shares.

 

Berkshire’s Stock Reductions:

ConocoPhillips [COP]

– Berkshire again decreased its stake in COP by -2,449,312 shares (-18.1%) down from 13,529,270 shares, bringing its total to 11,079,958 shares. On 12/31/2013, the total of Berkshire’s holding had a market value of approximately $782.8 million ($782,799,000).
– During Q3 2013 Berkshire decreased its holding in ConocoPhillips by -10,594,641 shares (-43.92%) down from 24,123,911 shares, bringing its total to 13,529,270 shares.

 

Liberty Media Corp [LMCA]

– Berkshire decreased its stake in Liberty Media by -322,340 shares (-5.73%) down from 5,622,340 shares, bringing its total to 5,300,000 shares. On 12/31/2013, the total of Berkshire’s holding had a market value of approximately $775.35 million ($775,347,000).
– During Q1 2013, Starz was a new holding and entry in the SEC filing. Starz was a spin-off from the existing holding in Liberty Media Corporation, and was not a new purchase. Both Liberty Media and Starz began trading as separate companies on 1/14/2013.
– During Q4 2012 Berkshire increased its stake by 122,340 shares (2.24%), bringing it up from 5,500,000 shares to a total of 5,622,340 shares
– In Q2 2012, Berkshire increased its stake by 2,500,000 shares (83%) from 3,000,000 shares to 5,500,000 shares.
– During Q1 2012 its was increased stake by 1,298,600 shares (76%).
– Liberty Media was a new holding in Q4 2011.

 

Moody’s Corp [MCO]

– Berkshire decreased its stake in Moody’s by -252,400 shares (-1.01%) down from 24,922,178 shares, bringing its total to 24,669,778 shares. On 12/31/2013, the total of Berkshire’s holding had a market value of approximately $1.94 billion ($1,935,837,000).
– During Q2 2013, Berkshire decreased its holding in Moody’s by -3,493,072 shares (-12.29%) down from 28,415,250 shares, bringing its total to 24,922,178 shares.

 

Starz Inc [STRZA]

– Berkshire decreased its stake in STRZA by -1,080,459 shares (-19.22%) down from 5,622,340 shares, bringing its total to 4,541,881 shares. On 12/31/2013, the total of Berkshire’s holding had a market value of approximately $132.8 million ($132,804,000).
– During Q1 2013, Starz was a new holding and entry in the SEC filing. Starz was a spin-off from the existing holding in Liberty Media Corporation, and was not a new purchase. Both Liberty Media and Starz began trading as separate companies on 1/14/2013.

 

Suncor Energy [SU]
– Berkshire decreased its stake in Suncor by -5,009,957 shares (-27.82%) down from 18,009,957 shares, bringing its total to 13,000,000 shares. On 12/31/2013, the total of Berkshire’s holding had a market value of approximately $455.65 million ($455,650,000).
– During Q3 2013, Berkshire increased its holding in Suncor by 240,500 shares (1.35%) up from 17,769,457 shares, bringing its total to 18,009,957 shares.
– During Q2 2013, the integrated energy company was a new stake. A total of 17,769,457 shares of Suncor were purchased during the quarter, and was worth approximately $524 million ($524,021,000) as of 6/30/2013.

 

Berkshire’s Stock Sell Offs:

Dish Network Corp [DISH]

– Berkshire eliminated its stake in the pay TV provider selling 547,312 shares. The total of Berkshire’s holding had a market value of approximately $24.6 million ($24,635,000) at the end of the previous quarter (Q3 2013).
– DISH was a new stake in Q2 2013. A total of 547,312 shares of DISH were purchased during that quarter, and was worth approximately $23 million ($23,272,000) as of 6/30/2013.

 

GlaxoSmithKline PLC [GSK]

– Berkshire sold its stake in GSK by selling its remaining 345,819 shares.
– During Q3 2013 Berkshire decreased its holding in GSK by -1,130,202 shares (-76.57%) down from 1,476,021 shares, bringing its total to 345,819 shares. On 9/30/2013, the total of Berkshire’s holding had a market value of approximately $17.35 million ($17,350,000).

 

Buffett, Combs, Weschler:

– During the second quarter of 2012 Buffett said Weschler and Combs would oversee about $4 billion each, nearly double the amount Buffett previously said at the company’s 2012 annual meeting (May 5 2012). Buffett though, is still responsible for the larger investments (SU, IBM, WFC) and likely the older holdings (IR, GE, JNJ, PG, USB, UPS, VRSK).
– Stake increases in DaVita were likely Ted Weshcler’s, as he previous held it prior to joining Berkshire. This is one of the more interesting holdings as Berkshire continued to add to DVA continuously ever since it became a holding. The holding has now become worth over $1.67 billion alone.
– CVS, Dollar General, DIRECTV, and Visa were already in the Berkshire portfolio before Weschler, and it is likely Todd Combs had made those stock moves. Some were also previous investments held by Combs as well.
– The size of DISH, BK, DE, GM, PCP, WBC, NOV, and VIAB stakes suggest they are either Combs or Weschler’s picks.
– It has been revealed that Weschler was also responsible for putting together the newspaper deals.

– As I mentioned in previous summaries, it is likely that the long time holdings of JNJ, KRFT/MDLZ, PG, SNY were not bad investments and does not mean Buffett doesn’t like the businesses anymore (had mentioned in Q2 2012 that he thinks they are strong businesses), but perhaps that they have already appreciated significantly over the years, and likely selling them to provide capital to Combs & Weschler as well has to himself in order to allocate towards better opportunities.

 

SEC Filing:

You can view the 2/14/2014 SEC filing which discloses Berkshire Hathaway stock holdings here:
http://www.sec.gov/Archives/edgar/data/1067983/000095012314002615/xslForm13F_X01/form13fInfoTable.xml

The filing does not differentiate between investments that are made by Berkshire Hathaway, its subsidiaries, Todd Combs, Ted Weschler, or Warren Buffett himself (as the chairman and chief executive of the company). Buffett usually makes his stock investments for Berkshire Hathaway through his insurance arms (Berkshire Hathaway Life Insurance Co. of Nebraska, Columbia insurance Co, GEICO, National Indemnity Co, Wesco Financial, etc.).

 

Full Disclosure:

I am long Berkshire Hathaway [BRK.A /BRK.B], DaVita. I do not plan on acquiring or selling shares, of any of the companies mentioned within this post, within the next 3 trading days.

 

Recommended Warren Buffett Related Books:

Although its easy to follow and copy Warren Buffett’s stock moves (buys/sells), we only learn of his actions months after it has been done (SEC filing is always later). We would never know for sure why the move was made or what other reasons were behind it.

Buffett recommends investors who want to learn how he invests, to read books that he specifically endorses and recommends, as well as past Berkshire Hathaway annual reports. The following is list of those few books (I’ve have read all but two of these and learned to invest like Buffett):

DREAM BIG – Cristiane Correa

Business Adventures – John Brooks

The Snowball: Warren Buffett and the Business of Life – Alice Schroeder

Poor Charlie’s Almanack – Peter D Kaufman

The Intelligent Investor – Benjamin Graham

Thanks and Happy Investing! – The Investment Blogger © 2014

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s